Nuapay & Felloh! partner to cut cost of processing donations

Account to account payment solutions provider and open banking specialist Nuapay has partnered with Felloh!, a UK-based start-up and social enterprise, to help reduce payment processing costs for charities. According to the firms, in 2019, the UK’s total B2C e-commerce market reached £233 billion, of which £2.33 billion went on processing costs and card fees, based on an estimate of 1% of total transaction value. With 2018 seeing £10.1 billion given to charities in the UK, this potentially means some £101 million went on fees and costs instead of contributing to charitable services. Founded by a group of furloughed entrepreneurs, Felloh! is aiming to turn reduced payment processing costs into £1 billion in donations for charities and social enterprises. It says its new open banking based solution, which uses Nuapay’s FCA regulated open banking payment platform, will charge charities 80% less than other online donation platforms, with a £50 donation made through Felloh! for example having a 25p processing cost. Felloh!’s pay button can be integrated into charities’ and retailers’ websites. Consumers can donate directly to charities or pay for purchases by clicking on the button and approving the payment in their banking app. This also enables the organisations to reduce payment processing costs through avoiding card scheme fees. And, for every payment taken online on a retailer’s site, 10p is also set aside via an escrow account for their selected charity. SMEs or charities in offline environments can also collect payments via QR codes. Payments are transferred in real-time and reconciliation is fully automated, and charities can also opt to have Gift Aid automatically calculated in an HMRC-friendly presentation, while through Nuapay’s platform, all transactions are fully Strong Customer Authentication (SCA) compliant. Will Bicknell, Founder at Felloh! said: “We asked beta testers if they would use the Felloh! button as a payment method for online goods and 96.8% said yes. This confirmed our mission was one of longevity, and not just a lockdown project. Our pursuit is to change the way people make digital payments while simultaneously providing a better donation platform for social enterprises and charities. We selected Nuapay as our partner due to its extensive functionality and service levels.” Robin Bradley, Trustee of Spotlight on Africa – one of the first charities to use the new service, said: “Working with Felloh! means for every £30 donation we save transaction costs that can provide an extra 3 meals to the children we support in Uganda. We are also excited about a new source of donations via their payment button with retailers and delighted to be one of their earliest partners.” In addition, as a social enterprise, once Felloh! has covered its own costs it will give a minimum of 50% of profits to charitable causes.  

from UK Fundraising https://ift.tt/3daQPpS